Bandhan Asset Management Company (AMC) has entered the specialised investment fund (SIF) segment by launching its first SIF strategy called Aarudh Hybrid Long-Short Fund.
This launch marks Bandhan AMC’s entry into this category through its Aarudh platform.
Fund Allocation and Investment Strategy
The fund will follow a balanced allocation approach. Around 35% to 65% of the portfolio will be invested in debt and money market instruments, while the remaining 35% to 65% will be allocated to equity instruments.
The equity portion will be fully hedged and market-neutral, meaning the fund does not depend on market direction for returns.
Instead, it aims to benefit from pricing inefficiencies and arbitrage opportunities. The fund is also allowed to take unhedged derivatives exposure of up to 25% of the total portfolio.
Debt Portfolio Structure
The debt segment of the fund will focus on short- to medium-term investments, with an active duration ranging from one to four years.
The portfolio will mainly invest in AAA-rated and sovereign securities. To maintain stability and liquidity, exposure to AA+ and AA-rated instruments will be capped at 10%.
Target Investors and Market Listing
According to Vishal Kapoor, CEO of Bandhan AMC Limited, the fund is aimed at sophisticated investors, including high net-worth individuals (HNIs), institutional investors, and family offices.
These investors typically look for structured investment solutions under the SIF framework that combine debt investments with equity arbitrage strategies.
After allotment, the units of the Aarudh Hybrid Long-Short Fund will be listed on both the NSE and BSE, allowing investors to trade them in the secondary market.
Position in the Current Market
With this launch, Bandhan AMC joins other asset management companies expanding into the specialised investment fund space.
The move reflects growing demand from investors for differentiated, regulated investment strategies beyond traditional mutual fund offerings.
